We have received many letters asking whether University of the People is a multilevel marketing (MLM) company. The answer is no: UoPeople does not engage in multilevel marketing, because it uses much more sophisticated sales strategies than traditional MLM.

In traditional MLM, every seller at every level earns a commission. Although the entire pyramid scheme is fundamentally a scam and most sellers ultimately end up losing money despite possible apparent earnings, one key point remains: each seller receives some form of payment. University of the People, on the other hand, doesn't pay its sellers anything, which is even worse than traditional MLM. Under the pretext of being a "non-profit" institution, it recruits "ambassadors" without paying them. Similarly, it hires unqualified "volunteer instructors'", paying them a ridiculously low amount under the table and without a proper employment contract. By doing this, this online university brings its costs down to zero while also squeezing even more out of well-intentioned people. In other words, those whom UoPeople calls "ambassadors" and tasks with recruiting new students are unwitting participants in a pyramid scheme who receive no earnings at all, not even an illusion of profit. The justification is always the same: "We are a non-profit university fighting global poverty". However, the reality is very different: UoPeople does not fight poverty at all, and allows students in the developing world to remain in increasingly dire conditions. It is nothing more than an impressive money-making machine.

Besides, essential services that a university should provide are completely eliminated, starting with professors and qualified staff who should oversee the quality of education. UoPeople has none of this, meaning it keeps all the money that should instead be invested in students' education. In this pyramid scheme, the only entity generating real profits is the Israeli University of the People.